protest is filed with the GSBCA. The protest file shall be submitted with the appropriate number of copies for GSBCA, the AGC, the protestor, and all interested parties. The AGC will supplement the protest file with legal arguments to support the contracting officer's position and will submit the complete protest file to GSBCA and all interested parties within the time established by GSBCA.

(d) If suspension of procurement authority was requested, but not considered appropriate due to the circumstances in FAR 33.105(d)(1), the Head of the Contracting Activity shall execute the determination and findings prescribed by FAR 33.105 after consulting with the AGC, so that the GSBCA may decide the issue.

1333.106 Solicitation provision and contract clause.

(a) The contracting officer shall insert the provision at 1352.233-2, Service of Protest (JAN 1985) (Deviation FAR 52.233–2), in lieu of the provision at FAR 52.233-2 in solicitations for other than small purchases.

Subpart 1333.2—Disputes and
Appeals

1333.209 Suspected fraudulent claims.

The contracting officer shall report suspected fraudulent claims or misrep

resentations of fact to the Office of Inspector General in accordance with the Department Administrative Order on Inspector General Investigations (DAO 207–10).

1333.213 Obligation to continue perform

ance.

(a) The contracting officer may use Alternate I to the clause at FAR 52.233-1, Disputes, only after the Head of the Contracting Activity has determined in writing that—

(1) Continued performance is necessary pending resolution of any claim arising under or relating to the contract because of unusual circumstances which make continued performance essential to the public health or welfare;

(2) Financing is or will be available for the continued performance; and (3) The Government's interest is or will be properly secured.

Subpart 1333.70-Department Board of Contract Appeals

1333.70-1 Department Board of Contract Appeals.

The General Services Administration (GSA) Board of Contract Appeals serves as the Board of Contract Appeals for the Department.

[49 FR 12964, Mar. 30, 1984]

PART 1334-MAJOR SYSTEM ACQUISITION

AUTHORITY: Federal Property and Administrative Services Act of 1949, as amended (40 U.S.C. 486(c)), as delegated by the Secretary of Commerce in Department Organization Order 10-5 and Department Administrative Order 208-2.

1334.003 Responsibilities.

(a) The Department's policy, procedures and responsibilites for implementing OMB Circular A-109 are contained in the Department Administrative Order on Major System Acquisitions for the Department of Commerce (DAO 208–3).

(b) When the Secretary approves a mission need, the Acquisition Executive shall designate the servicing contracting office for all phases of the major systems acquisitions.

(c) Within 60 days after identification of the servicing contracting office, the program manager shall complete and submit the overall acquisition plan to the Acquisition Executive for approval. The servicing contracting office shall assist in developing the overall acquisition plan. The overall acquisition plan shall include for each of the major systems acquisition phases (i.e., exploration of alternative systems, competitive demonstrations, full-scale development and production) a schedule for completion of at least each of the following functions: (1) Solicitation development terms of mission need;

in

(2) Advance publicity for the initial, exploration phase;

(3) Issuance of requests for proposals (RFPs)

(4) Closing dates for RFPs; and (5) Evaluation and award.

(d) The program manager shall submit all changes in the overall acquisition plan to the Acquisition Executive along with a written explanation of the need for each change. (See 1307.1 for acquisition planning, in general).

[49 FR 12964, Mar. 30, 1984]

1342.102-70 Post award audit reviews.

(a) Generally, the final invoice shall not be approved until a close-out audit has been performed and all outstanding issues have been negotiated or resolved on the following types of contracts of $100,000 and above:

(1) Cost-reimbursement type contracts;

(2) The cost-reimbursement portion of fixed-price contracts;

(3) Letter contracts which provide for reimbursement of costs;

(4) Time and materials contracts; and

(5) Labor-hour contracts.

(b) Even though the $100,000 postaward audit threshold generally applies, an audit may be requested regardless of the dollar amount when the contracting officer determines that an audit is justified under one of the following circumstances:

(1) There is some evidence of fraud or waste;

(2) The contractor's performance under the contract has been questionable;

(3) The contractor had a high incidence of unallowable costs under a previous contract;

(4) The contract is with a newly established firm, or a firm which has just begun dealing with the Government.

(c) All requests for audit services and all relevant documents shall be sent to the address listed in 1315.805-70(b). To ensure receipt and planned action on audit requests, all requests should include a request for confirmation of receipt of the request and the date

planned for delivery of the audit report.

(d) See the Department's Model Procedures for Closeout of Completed Contracts for further information on audits, including desk audits for contracts of less than $100,000, and waiver of the need for post award audits. [49 FR 12965, Mar. 30, 1984]

PART 1345-GOVERNMENT PROPERTY

(1) Salaries and fringe benefits paid to Government employees who are assigned to a work activity (e.g., reprocurement activities) as a result of the default;

(2) Preaward survey expenses incurred in qualifying reprocurement contractors; and

(3) Costs incurred in printing and distributing the reprocurement solicitation.

(b) "Excess costs", as used in this part, means any costs, other than administrative costs, incurred by the Government in reprocuring similar supplies or services or performing similar services as a result of the contractor's default.

[51 FR 15332, Apr. 23, 1986]

Subpart 1349.4-Termination for Default

1349.402-7 Other damages.

(a) The contracting officer may recover administrative costs under the default clause when it is in the best interest of the Government. A contracting officer's decision to recover administrative costs must balance the expected cost to the Government of documenting and supporting the assessment with the expected recovery amount.

(b) Documents used to support an assessment of administrative costs must clearly demonstrate that the added costs incurred by the Government were a direct result of the default.

(1) To support administrative labor costs, the contracting officer should keep a record of:

(i) Name, position, and organization of each employee performing work activities as a consequence of the default;

(ii) Dates of work and time spent by each employee on the repurchase;

(iii) Specific tasks performed (e.g., solicitation preparation, clerical); (iv) Hourly rates of pay (straight time or overtime); and

(v) Applicable fringe benefits.

(2) Travel vouchers, invoices, printing requisitions, and other appropriate evidence of expenditures may be used to support other administrative costs (e.g., travel, per diem, printing and distribution of the repurchase contract).

(c) If assessment of administrative costs is considered appropriate after review by the AGC, the contracting officer shall make a written demand on the contractor for administrative costs. The written demand shall describe the basis for the assessment and the cost computations. The same demand letter may be used to assess administrative costs and any excess costs. If the contractor fails to make payment after receiving a contracting officer's final decision, the contracting officer shall follow the procedures in Subpart 1332.6 and FAR Subpart 32.6 to collect the amount owed the Government.

(d) The recovery of excess or administrative costs does not preclude the Government from exercising other rights or remedies which it may have by law or under the terminated contract.

[51 FR 15332, Apr. 23, 1986]

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